Trip cancellation insurance (TCI) is intended to repay the traveler, the financial losses caused to him due to the cancellation of his trip before the departure or incase of interruption in his trip .

But the cancellation of the trip should be for valid reasons. Otherwise this insurance will not reimburse the money. Generally all trip cancellation insurance policies reimburse incase of sudden illness, injury or death of the family members and likewise. Most insurance policies cover the losses caused by cancellation of the trip due to unforeseen events.

There is a myriad d of reasons for the cancellation of a trip. The house may burn down, the traveler may entrusted with a jury duty , sudden repair of the vehicle on the way to airport , an unannounced strike by the travel suppliers are some of the valid reasons for cancellation of trips . The trip cancellation is eligible for reimbursement under these circumstances according to this policy. But simply canceling the trip for change in the mindset, mood swings etc will not validate the cancellation.

More Glossary Terms Explained here